(a) General Requirements. In all civil and bankruptcy actions, the Clerk may
-- unless the Court orders otherwise -- accept only the following as surety
on a bond:
(1) a surety company approved by the United States Department of
Treasury;
(2) cash in an amount set by the Court; or
(3) a personal surety secured by real estate that complies with
subsections (d), (e), (f), and (g) below.
(b) Powers of Attorney. A Treasury Department approved surety company
may designate an agent in Kentucky to execute bonds. If so, the power of
attorney designating the agent may be filed with the Clerk in the jury
division in which the action is pending. In lieu of filing the power of
attorney with the Clerk, a copy of the power of attorney must be appended
to each bond executed.
(c) Unacceptable Personal Sureties. The Clerk must not accept the following
as a personal surety on any bond:
(1) an attorney;
(2) a Court officer or employee; or
(3) the United States Marshal or any deputy marshal.
(d) Personal Surety Secured by Real Estate; Generally. The Clerk must
accept a personal surety secured by real estate under the following
conditions:
(1) The real estate is located in Kentucky;
(2) The real estate has an unencumbered value of at least 110% of the
bond amount;
(3) The real estate is not owned by a corporation or partnership; and
(4) If the property is held jointly, all joint tenants have executed the
bond.
(e) Procedure for Posting Real Estate Bond. To post a real estate bond, the
sureties must execute an affidavit providing the following information:
(1) the owners' names and addresses;
(2) an affiant's statement as to the assessed value from the Property
Valuation Administrator's Office or, if that is not available, an
appraisal by a licensed appraiser; and
(3) a listing of all liens and mortgages on the property, including all but
the current year's real estate taxes.
(f) Affidavit on Appearance Bonds. On appearance bonds, the affidavit
required in (e) must be incorporated by reference in the Justification of
Sureties portion of the Appearance Bond Form.
(g) Bond Execution and Deed Deposit. All parties to the deed and the bond
must execute the bond and take the oath. The deed, or certified copy of the
deed, must be deposited with the Clerk. Upon receipt of the deed, or
certified copy of the deed, the Clerk must provide a receipt to the owner. If
the bond is not forfeited, the deed must be returned to the property owner in
person, or by certified mail, at the conclusion of the case.
(h) Lis Pendens Notice and Fees. The Clerk must file a lis pendens notice
against the property in the County Clerk's Office in the county where the
property is located. The required fee for filing the notice of lis pendens is
required upon execution of the bond.
